Allianz SE said on Monday that it has signed binding agreements to sell its 26% stake in Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company to Bajaj Group for approximately 2.6 billion euros or approximately Rs 24,180 crore.
Allianz will no longer be a promoter of the joint ventures, and its agreements with Bajaj Finserv Ltd. will be terminated after the shares are transferred, the statement said, adding that the proceeds may be received in multiple tranches, which are subject to regulatory approvals.
The sale followed discussions with Bajaj Finserv Ltd. The acquisition of Allianz SE’s stake will increase Bajaj Group’s ownership in BAGIC & BALIC to 100% from the current 74%, Bajaj Finserv said in a separate statement.
"The 24-year-old joint venture agreements between the Bajaj Group and Allianz SE in respect of insurance businesses will stand terminated upon the completion of the first tranche of acquisition of at least 6.1% and reclassification of Allianz from being a promoter to an investor," Bajaj Finserv said.
While exiting these joint ventures, Allianz reiterated its commitment to India as a growth market and intends to explore new opportunities to strengthen its presence as both an investor and an operator, Allianz said.
"Allianz and Bajaj are fully committed to ensuring a smooth transition in a manner that interests of policyholders, intermediaries, and other stakeholders are least affected," Bajaj Finsev said.
Allianz will consider reinvesting the proceeds in line with its capital management policy, which includes a minimum earnings distribution and flexibility for further investments.
RECOMMENDED FOR YOU

Bajaj Finserv Shares Dip Amid Volatility Despite Positive Outlook, Expansion Plans


FPIs Turn Buyers After A Day; DII Buying Soars After Bajaj Finserv Block Deal


ICICI Prudential, Morgan Stanley Among Mutual Funds Buying Rs 5,500-Crore Stake In Bajaj Finserv


Bajaj Holdings Offloads Bajaj Finserv Stake Worth Rs 2,000 Crore In Block Deal
